German retailer REWE wants to tap into the growing segment of on-the-go consumption in Europe. To that end, the group has acquired all shares of specialised wholesaler Lekkerland.
Complementary
Lekkerland specialises in consumption on the go: the wholesaler supplies over 91,000 sales points in seven European countries. These are mainly gas stations, kiosks, bakeries, food retailers, fast food chains, tobacco shops and convenience stores. That makes this company an ideal addition to REWE, one of the largest food retailers in Germany and in Europe in general. According to CEO Lionel Souque, REWE wants to increase its share in a growing market segment by creating a new strategic division: convenience.
The CEO notices the growth of on-the-go and out-of-home consumption as the strongest trends in our sector, and as he expects them to grow even further, REWE is steadily expanding and improving its convenience ranges. The combination of the specialised logistics and extensive wholesale and convenience expertise at both companies is a sure to build success in that growing market, Souque says.
European powerhouse
With the merger between these two companies, a new European powerhouse is born in the convenience segment. Lekkerland has about 4,900 employees in Europe and generated a turnover of 12.4 billion euros last financial year. The wholesaler supplies products for eating, drinking and smoking, as well as prepaid cards. In Belgium, the group operates under the name Conway and its 400 people generate a turnover of 1.5 billion euros. In the Netherlands, Lekkerland BV generates a turnover of almost 2.5 billion euros.
As a whole, the REWE Group generated a turnover in excess of 61 billion euros last year, courtesy of its 360,000 employees in 22 European countries. Most famous are the supermarkets and hypermarkets of the brands REWE, REWE Center and Billa, discount chain Penny and Toom construction markets. No financial details surrounding the acquisition were released.
